5 Million Medicare Advantage Enrollees Must Switch 2027 Plans as Insurers Raise Costs
Updated
Updated · The New York Times · Oct 9
5 Million Medicare Advantage Enrollees Must Switch 2027 Plans as Insurers Raise Costs
1 articles · Updated · The New York Times · Oct 9
Summary
Roughly 5 million people with private Medicare coverage will have to pick new plans for 2027 because their current coverage was canceled or withdrawn from their county, according to Duos.
UnitedHealth, Centene and some Blue Cross plans have closed policies they deemed unprofitable, shrinking choices and in some rural counties leaving Medicare Advantage shoppers with no plan options at all.
2027 enrollees also face higher out-of-pocket costs for drugs, doctor visits and hospital care, a hit likely to fall hardest on older Americans living on Social Security and other fixed incomes.
The disruption clashes with Trump administration claims that Medicare Advantage is stable and average premiums will fall next year, even as about 35 million seniors now rely on private Medicare plans.
The upheaval could carry political risk before the midterms, with a new KFF poll finding nearly twice as many likely voters trust Democrats over Republicans on health care costs.
With millions losing their Medicare Advantage plans for 2027, could returning to Original Medicare actually save you money and expand your network?
If your 2027 Medicare plan was just canceled, do you know how to use guaranteed-issue rights to secure alternative coverage before December?
2027 Medicare Advantage Shakeup: Plan Exits, Benefit Reductions, and Rising Costs Impacting 2 Million Seniors
Overview
In 2027, Medicare Advantage faces a major shakeup as insurers respond to rising medical costs, new prescription drug liabilities, and reduced federal payments. To protect profits, major carriers are cutting thousands of plans, shrinking their coverage areas, and shifting from broad PPOs to more restrictive HMOs. This leads to fewer choices, higher out-of-pocket costs, and scaled-back supplemental benefits for seniors. Many will be confused during enrollment, and those losing their plans risk being moved to Original Medicare, where getting supplemental coverage can be difficult. Despite industry lobbying winning a higher rate increase, the market is now focused on financial stability over growth.